Based on technical analysis, it appears that the AUDCHF currency pair has potentially reached the end of a bearish trend that began on January 25th. A significant downward pressure was observed as the pair broke through key zones, and a recent breakout of the H4 support zone occurred yesterday at 0.62747, resulting in sellers driving the price down by 75 pips.
At present, the pair seems to be technically oversold, with a harmonic reversal pattern known as a bullish butterfly identified on the H1 timeframe, supporting this perspective. This pattern may indicate either an end to the bearish run or an imminent trend reversal.
As such, traders are advised to closely monitor price action around the levels of 0.62140 and 0.61773 for intra-day buy setups before entering into long positions. In the short-term, a price rally to 0.62733 is expected, followed by a potential rise to 0.63129 in the medium-term.
At present, the pair seems to be technically oversold, with a harmonic reversal pattern known as a bullish butterfly identified on the H1 timeframe, supporting this perspective. This pattern may indicate either an end to the bearish run or an imminent trend reversal.
As such, traders are advised to closely monitor price action around the levels of 0.62140 and 0.61773 for intra-day buy setups before entering into long positions. In the short-term, a price rally to 0.62733 is expected, followed by a potential rise to 0.63129 in the medium-term.
Comment:
Pattern failed and sellers drove price to the downside.